If you’re interested in improving your credit score, you’re not alone. A good credit score can mean getting approved for a loan with a low interest rate or even getting a car lease. However, many people don’t know where to start when it comes to improving their credit score.
The below tips, provided by Debt Relief Canada from A. Fisher & Associates, will help you on your journey to improving your credit score (find out more HERE).
Check out this list of 10 super easy ways to improve your credit score now.
1. Check your credit report regularly.
Checking your credit report regularly is one of the most important things you can do to keep track of your financial health. By monitoring your credit report, you can identify any potential financial stressors early on and take steps to mitigate them. This is especially important if you’re planning on making a major purchase, like a home or a car. By proactively monitoring your credit health, you can avoid financial stress down the road. So be sure to check your credit report regularly and stay on top of your personal finance game.
2. Make all of your credit card payments on time.
One of the biggest factors in your credit score is your payment history. Making all of your credit card payments on time shows lenders that you’re a responsible borrower and that you’re capable of repaying your debts. If you have a history of late or missed payments, it’s time to start cleaning up your act. Be sure to make all of your credit card payments on time from here on out, and you’ll see your credit score start to improve.
3. Keep your credit card balances low.
Another important factor in your credit score is credit utilization, which is the percentage of your credit limit that you’re using. For example, if you have a credit limit of £1,000 and you’re carrying a balance of $500, your credit utilization is 50%. It’s generally best to keep your credit utilization below 30%, so paying down your credit card balances is a great way to improve your credit score.
4. Get rid of any unnecessary credit cards.
If you have credit cards that you don’t use, it’s time to get rid of them. Having unused credit cards can actually hurt your credit score, so it’s best to get rid of them if you’re not using them. If you’re not sure which credit cards to keep and which to get rid of, a good rule of thumb is to keep the credit cards with the lowest interest rates and get rid of the rest.
5. Consolidate your debt.
If you have multiple debts with high interest rates, it may be beneficial to consolidate your debt into a single loan with a lower interest rate. This will not only save you money on interest payments, but it will also help you pay off your debt faster. consolidating your debt can also help improve your credit score by showing lenders that you’re managing your debts responsibly.
6. Limit your credit applications.
Every time you apply for a credit card or loan, your credit score takes a small hit. This is because each credit application results in a hard inquiry on your credit report, which can short-term lower your credit score. So if you’re planning on applying for credit in the near future, it’s best to limit your credit applications beforehand to avoid any potential negative impact on your credit score.
7. Use a credit monitoring service.
Credit monitoring services can help you keep track of your credit score and credit report. They can also help you identify any potential fraudulent activity on your account. This is especially important if you’ve been a victim of identity theft in the past. By monitoring your credit closely, you can help protect your credit score and avoid financial stress down the road.
8. Keep old debts on your credit report.
As time goes by, your old debts will have less and less impact on your credit score. In fact, after seven years, most negative information will be removed from your credit report entirely. So if you’re trying to improve your credit score, it’s best to keep old debts on your credit report and focus on paying down your more recent debts.
9. Set up automatic payments.
One of the best ways to avoid late or missed credit card payments is to set up automatic payments. This way, you can ensure that your credit card bill is paid on time, every time. Automatic payments can also help you keep track of your spending and avoid overspending on your credit card.
10. Check your credit report for errors.
It’s important to check your credit report regularly for any errors or inaccuracies. If you find any errors, be sure to dispute them with the credit bureau right away. By correcting any errors on your credit report, you can help improve your credit score and avoid financial stress down the road.
Following these 10 super easy steps will help you improve your credit score in no time! So don’t wait any longer, start taking action now and see the results for yourself.